Compound K47E is used to make Goforth Corporation's major product.The standard cost of compound K47E is $24.50 per ounce and the standard quantity is 6.1 ounces per unit of output.In the most recent month,5,030 ounces of the compound were used to make 700 units of the output.When recording the use of materials in production,Raw Materials would be:
A)credited for $123,235.
B)debited for $123,235.
C)debited for $104,615.
D)credited for $104,615.

Question

Quizplus · Accepted Answer

The standard cost of compound K47E is $24.50 per ounce and the standard quantity is 6.1 ounces per unit of output. In the most recent month, 5,030 ounces of the compound were used to make 700 units of the output. The standard cost of the compound used in production is 6.1 ounces per unit of output * 700 units of output * $24.50 per ounce = $104,615. Therefore, Raw Materials would be debited for $104,615.

Compound K47E Is Used to Make Goforth Corporation's Major Product